Fidelity Roths for kids

Financial Planning - Financial planning in general. (Moderated) 

  Yahoo!   Google   Windows Live   del.icio.us   digg   Netscape

Subject Author Date Fidelity Roths for kids sandybeth 01-12-2008  Re: Fidelity Roths for kids Elle 01-12-2008  Re: Fidelity Roths for kids sandybeth 01-12-2008  Re: Fidelity Roths for kids joetaxpayer 01-12-2008  Re: Fidelity Roths for kids FranksPlace2 01-13-2008  Re: Fidelity Roths for kids pallav 01-13-2008
Posted by sandybeth on January 12, 2008, 11:54 am With inheritance money, I started small Roth-IRAs for my 2 young-adult children. They are with Fidelity and are currently in money market. Assuming these young people don't cash them out in 5 years, what Fidelity fund(s) are good for this purpose? I would like something moderate that I don't have to monkey around with. Should I choose an index fund or asset allocation? SandyBeth Posted by Elle on January 12, 2008, 12:52 pm To clarify for others: Did you match the young adult children's earned income with as much as is allowed in a Roth for each? The earned income requirement can be persnickety with kids. Once these kids reach the age of majority, they can take that money (less earnings) out at any time and spend it as they wish, BTW. There is no five-year requirement, unless you mean they are five years from the age of majority. Make the kids use the various interactive tools free online and figure out an allocation, I say. Tell them they don't do it, then no Roth deposit. Maybe you still choose the funds, but at least this might introduce them to investing for the long run. I would not rule out ETFs, either, especially Vanguard ones. Darn low expenses at Vanguard. Posted by sandybeth on January 12, 2008, 5:34 pm > To clarify for others: Did you match the young adult > children's earned income with as much as is allowed in a > Roth for each? Yes, they both had enough earned income to cover the match. > Once these kids reach the age of majority, they can take > that money (less earnings) out at any time and spend it as > they wish, BTW. There is no five-year requirement, unless > you mean they are five years from the age of majority. They are in their late 20's, and know about the 5-yr requirement. I would not > rule out ETFs, either, especially Vanguard ones. Darn low > expenses at Vanguard. Already in Fidelity money market. Posted by joetaxpayer on January 12, 2008, 5:57 pm sandybeth wrote: > They are in their late 20's, and know about the 5-yr requirement. Deposits have no such requirement, only the gains or money converted to Roth. Is there any reason why they'd need to tap this money so soon? If not, this should be invested for the long term and nearly all in stock index funds. JOE Posted by FranksPlace2 on January 13, 2008, 1:05 pm > sandybeth wrote: > > They are in their late 20's, and know about the 5-yr requirement. > > Deposits have no such requirement, only the gains or money converted to > Roth. Is there any reason why they'd need to tap this money so soon? If > not, this should be invested for the long term and nearly all in stock > index funds. > JOE I'm with Joe. 100% distrbuted among large, mid and small cap index funds. Recently Fidelity cut their mgt fees for index funds. Frank Similar Threads Posted Buying Stocks (or ETFs) for Kids July 5, 2007, 11:07 pm Infant kids/ life insurance proceeds September 25, 2008, 2:05 pm Vanguard vs. Fidelity November 19, 2006, 11:47 am New Fidelity Roth IRA February 8, 2007, 4:55 am Fidelity Minimums February 26, 2007, 4:56 am Fidelity 401k Basics January 31, 2007, 5:03 am Fund closings at Fidelity January 26, 2007, 8:57 am Fidelity Versus Schwab? June 25, 2007, 5:08 am uncertain about my Fidelity IRA and the economy July 24, 2008, 5:11 am feedback on rolling over a 403b to IRA from Fidelity April 7, 2007, 6:37 am